Lessons from Bank and Enterprise Restructuring in the Transition Economies of Europe and Central Asia

Late banking transitions: Comparing Uzbekistan to earlier reformers

“…Still, access to high-quality professional training is low-and more so outside bank headquarterswhile the urgency of retooling and obtaining the latest skills is not felt enough by most in the local banking industry. Several studies highlight the importance of develop the human capital along with market conditions for a competitive banking environment to emerge (Borish, Long, and Noel 1995;Claessens 1998a;Claessens 1998b;Brandt and Li 2003;Bonin, Hasan, and Wachtel, 2014). Claessens (1998) highlights that strong institutions could help substitute for the shortage of banking skills in the initial stages of transition.…”

Exporting and Restructuring in Privatised Firms from Russia, Ukraine and Belarus

“…Wide recognition of this 'need-to-change' in terms of the required sequence of events to achieve internationalisation, however, presupposes a 'capacity-tochange' that may in practice be inhibited by unsuitable corporate governance regimes (Borish et al, 1996) and insufficient pressure on senior enterprise managers to effect the required restructuring strategies.…”

Modelling the Macroeconomic Policy Framework for an Emerging Market Economy

“…We postulate that I has both domestic and foreign components and is a function of real income and the o¤cial real interest rate, given by the di¡erence between the regulated o¤cial nominal rate R and expected in£ation Q e . Borish et al (1996) point out that, during bank and enterprise restructuring in the transition economies, many enterprises turn to state-owned banks for credit to allow them to defer restructuring. Indeed, as the experience in Romania indicates, the ¢nancing of small-and medium-sized enterprises (SMEs) creates huge demands on a constrained state banking sector, and ultimately SMEs may have to resort to the informal ¢nancial sector (Anton et al, 1996).…”

“…To foster transition to a market economy, the prescriptions that have so far been dispensed in most EMEs generally comprise orthodox neoclassical as well as heterodox new-structuralist policies. Four areas have dominated the most recent policy reforms, namely price de-control (World Bank, 1993;Patterson, 1996), privatization of state enterprises (Frydman et al, 1996;Rondinelli and Yurkiewicz, 1996), legal and institutional reforms (Sachs, 1996) and ¢nancial reforms (Gri¤th-Jones and Drabek, 1995), especially relating to the banking sector (Borish et al, 1996). Despite these policy reforms, the EMEs are still characterized by slow growth of formal market arrangements.…”